Returns Management Presented by: Carol Kossoris, CPA, MBA Heartland Business Systems

Agenda Returns Transaction Entry Inventory Gotcha’s Payables Transaction Entry Sales Transaction Entry Receivables Transaction Entry Q&A We will start with the hard stuff, Vendor Returns including the Inventory errors you may run into. Then we will cover the Customer Returns.

Returns Transaction Entry Show of hands: Please stand all those who have done Vendor Returns through Purchasing Now sit down if you sometimes run into error messages when doing Vendor Returns Those of you that just sat back down should discuss with those standing, how they do a days work in a day.

Document Types Return Return w/Credit Inventory Inventory w/Credit

Document Types-Return Returning against a PO The item is not matched to an invoice and a vendor credit will not be issued The item has not been removed from inventory If the item is being replaced, check Replace Returned Goods to reopen the PO if Received or create a new PO if Closed DEMO Generally, you would choose “Returns” if the product just arrived and upon inspection it was determined to be defective and needed to be immediately returned. Vendor Doc No can be used for an RMA number if you have one. Purchase Order SOFTEL000001 BACK FABRIC Receivings Transaction Entry Return Transaction

Document Types-Return w/credit Returning against a PO The item is matched to an invoice and a vendor credit will be issued The item has not been removed from inventory The item is not being replaced The return transaction must be manually applied to the invoice from the vendor Choose “Returns w/credit” if the product just arrived and upon inspection it was determined to be defective and needed to be returned but the Invoice has already been received.

Document Types-Inventory The item layer being returned is from an Inventory Receipt An Inventory Adjustment or Sales Return The item from a PO has been removed from inventory The item is being replaced PO Number will be grayed out

Document Types-Inventory w/credit The item layer being returned is from an Inventory Receipt or the PO Invoice has been posted An Inventory Adjustment or Sales Return The item is not being replaced The return transaction must be manually applied to the invoice from the vendor Replace Returned Goods will generate a new PO DEMO The least restrictive type. Inventory must be on hand and available DEMO Return Transaction SOFTEL000001 BACK LEATHER, Replace Goods, View New PO

Inventory Gotcha’s

Partials-Returned Item not being Replaced You must manually close the purchase order line after the non- returned Items have been Invoiced using the Edit Purchase Orders screen Then adjust costs if needed on the Adjust Costs screen. Then if necessary, correct the accrued and inventory accounts with a journal entry.

Wrong PO Item Received Return with Replace Returned Goods Receive correct PO Item

GP has Allocated my Item I need to Return Release the Allocation SOP Qty Fulfilled = 0 Reverse an MO Receipt Cannot Release Allocation (SOP Invoice Posted) Decrease Adjustment Invoice PO Item Enter Credit/Return in AP If replacing Item-New Internal PO or Increase Adjustment If you cannot Release the Allocation-start with an Inventory Adjustment Decrease Adjustment-Cost Consideration next slide

Inventory Adjustment with an Average Perpetual Item Adjust all quantities out Adjust in only the returned quantity at the receipt cost Adjust out returned quantity Adjust in remaining at old average cost.

Payables Transaction Entry

Document Type = Return Treated in GP like a Credit Memo Inventory module is not affected

Sales Transaction Entry

Type ID = Return To return goods once the Items are on your dock (Not a true RMA module) Sales quantity total in Inventory Quantities will be reduced Sales Returned Quantities Entry to select quantity type to return the inventory to On Hand, Returned, In Use, In Service, Damaged No dock receiving paperwork out-of-the-box Could use Other Form if paperwork is needed Use Batch (Work) for Authorized Returns List not yet at the dock

Receivables Transaction Entry

Document Type = Return Treated in GP like a Credit Memo Inventory module is not affected

Q&A

Thank You Carol Kossoris, CPA, MBA Senior ERP Consultant Financial and Distribution Certified Heartland Business Systems ckossoris@hbs.net 262-922-1687 @GPUG www.gpug.com info@gpug.com